Samudayik Laghubitta proclaims the window-dressing of financial statement was fallacious; Net profit soars by 29.84%

Samudayik Laghubitta Bittiya Sanstha Ltd. has published the report for 2nd quarter of the fiscal year 2074/75.

The company has earned a net profit of Rs 53.97 lakh till the end of 2nd quarter. The net profit was Rs 41.57 lakh in the corresponding quarter of the previous fiscal year. This accounts for a rise of  29.84%. The company shows an eps of Rs 15.42.

The interest income has surged to Rs 5.70 crore, stating a growth of 38.17%. Interest expense has grown by massive 96.89% to Rs 2.72 crore. The net interest income increased by 8.58% to Rs 2.98 crore. 

Staff expense has increased to Rs 1.74 crores, showing a growth of 8.85%. The operating expense surged by 33.87% to Rs 80.1 lakh.

Company’s operating profit increased by 29.84% to Rs 84.81 lakh. 

Both deposit collection and lending has shown an average growth. Deposit collection has surged to Rs 23.24 crore, up from Rs 17.85 crore last year showing a growth of 30.15%. Company's lending has increased by 48.16% to Rs  68.87.  Samudayik Laghubitta has NPL of 1.49%

However, company’s reserve has expanded by 66.56% to Rs  2.40crore. 

The company was about to float 300,000 units shares in general public from Magh 9, 2074.Due to the dispute related to window-dressing of a financial statement, the IPO was postponed by SEBON. 

Positive sides:

• Decent growth in deposit and lending.
• Reserve increased by 66.56%
• Increased net profit by 29.84%

Negative Sides:

• Hefty rise in interest expense.

Key Ratios:

EPS:                Rs 15.42
Networth:         Rs 204
Cost of Fund:   8.82%
NPL:                1.49%